Volkswagen takes its popular Jetta brand and turns it into a brand new and separate company that will produce cars for China, the German automaker said.
The Jetta car will be launched as a joint venture with China's state-owned car giant First Auto Works and will offer three models from the outset: the existing Jetta sedan and two jeeps. Volkswagen has not said that the models will be entirely electric, but there will probably be some will, based on the Chinese government's requirement that car companies make and sell a certain percentage of zero-emission or "new energy" vehicles.
"This is VW's very smart strategic move. The Jetta plate has a long history in China as a reliable car, "says Alicia Webb, a Los Angeles journalist and consultant who writes about the Chinese automotive industry for nearly two decades. On the edge, "Taking an existing model and adapting it to the Chinese market has a long history among foreign car manufacturers in China; VW took a step further. "
"In China, Jetta plays an extremely valuable role for us as a Volkswagen model. It has brought mobility to the masses, just as once in Beetle in Europe, "said Jurgen Stakman, who is on the management board of Volkswagen and is in charge of sales.
Volkswagen did not offer time details about the new models or whether they would sell outside of China. But he said the new Jetta joint venture will sell its cars using "innovative commercial formats" like digital showrooms, mobile sales trucks. The new brand will also create its own dealer network.
Chinese companies have experimented with a change in purchasing experience. NIO, launching EV, has built a small network of lounge styles, called "NIO Houses," where customers can go out, work or even attend classes on topics like: how to make espresso.
Automakers such as Volkswagen have been in China for years, but the country's recent push to promote EVs has doubled its efforts. The country is already the largest electric vehicle market in the world and the government has changed its rules to make sure it behaves to this leader.
For example, the Chinese government has made it impossible for foreign car manufacturers to produce cars within the country without concluding a joint venture agreement like what Volkswagen has faked with FAW. But last summer, China began to loosen these constraints, which have led Tesla to become the first foreign automaker to build a production base there. Tesla recently acquired its third Gigafactory and expects to start production by the end of 2019 at the earliest.
Traditional car manufacturers are also under pressure from technology companies that move forward each year in transport. In response, many people throw money on new ideas, in partnership with competitors or even split up. Volkswagen recently announced a "global alliance" with Ford, which will see both companies share trucks and vans. In Tuesday, Mostly, Wall Street Journal Volkswagen is also preparing to invest $ 1.7 billion in Argo, which is used to propel its autonomous cars.